The following is a summary of the Turning Point Brands, Inc. (TPB) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Turning Point Brands' Q1 Adjusted EBITDA increased 21.6% to $25.3 million.

• Revenue for the Zig-Zag segment rose by 11.5% to $46.7 million, which was a result of growth in papers and expansion in the alternative channel.

• Stoker's revenue also increased by 8% to $36.4 million despite a decline in loose-leaf volume.

• Overall, consolidated quarterly sales fell by 3.9% to $97.1 million; However, when excluding the CDS, total revenue increased by 10%.

• The company provided guidance for adjusted EBITDA in 2024 to be in the range of $95 million to $100 million.

Business Progress:

• The company sees promising growth opportunities with the entrance of the new executive, Andrew Flynn.

• Success has been noted in the alternative channel strategy of Zig-Zag, leading to a growth in average order sizes and increases in shelf space.

• Zig-Zag and Stoker's continue to create engaging opportunities for expanding consumer bases.

• The launch of a new product, FRE, received positive feedback and is expected to contribute significantly to future revenue and profit growth.

• Significant progress has been achieved in digital marketplaces, allowing a closer relationship with the end consumer.

• There are discussions about possibly divesting the CDS segment.

• The company succeeded in increasing its market share by 60% year over year and broadening the portfolio of the Zig-Zag brand.

• The strategic focus is now on finding new retail stores, distributors, and focusing on the right product mix.

• The company noted positive results in the FRE segment and plans on further expanding it.

• Despite competition, the company is confident in its robust online business platform that directly appeals to the end consumer.

More details: Turning Point Brands IR

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